Major update to an older post. DXY is approaching monthly support and will soon make a decision on whether or not it moves back up to 105 -> 112 and above.
RSI is diverging bullish, and also maintaining a long-term uptrend, thus far. This could indicate that monthly support holds and we see a strong move up soon.
On the other hand, should it lose monthly support and its RSI uptrend, there's not a whole lot of room for it to move down much further than the previous lows around 89-90. Either way, this would look like an incredibly weak attempt at re-testing the long-term falling wedge it broke out of as it formed the "W" shown above.
Regarding how this relates to market recoveries:
- I'd love to see it drag out and remain below 105 for recoveries to continue longer, or even lose monthly support @ ~99 for a really strong recovery
- However, in either scenario, whether holding monthly support or moving down near 89-90 or somewhere in between -- I expect recoveries will be ending soon when it does move back up, and if/when it reclaims 105 and 112, and moves higher, we're likely in for a pretty strong bear market.
Related ideas and original post from January linked below.
RSI is diverging bullish, and also maintaining a long-term uptrend, thus far. This could indicate that monthly support holds and we see a strong move up soon.
On the other hand, should it lose monthly support and its RSI uptrend, there's not a whole lot of room for it to move down much further than the previous lows around 89-90. Either way, this would look like an incredibly weak attempt at re-testing the long-term falling wedge it broke out of as it formed the "W" shown above.
Regarding how this relates to market recoveries:
- I'd love to see it drag out and remain below 105 for recoveries to continue longer, or even lose monthly support @ ~99 for a really strong recovery
- However, in either scenario, whether holding monthly support or moving down near 89-90 or somewhere in between -- I expect recoveries will be ending soon when it does move back up, and if/when it reclaims 105 and 112, and moves higher, we're likely in for a pretty strong bear market.
Related ideas and original post from January linked below.
Comment:
Market sentiments based on DXY movements imho:
Trade active:
A 2nd potential path added, should we lose monthly support, based on the idea that this could be a confirmed head/shoulders:
Trade active:
We've reached my first area of concern, also an area of resistance. Would love to see this react, either here at the bottom of the bright red box or within it, and move back down to weekly or monthly support (green box).
If it breaks through the red box, I start getting concerned about market recoveries ending soon, much more so if we breach and hold above 112:
If it breaks through the red box, I start getting concerned about market recoveries ending soon, much more so if we breach and hold above 112:
